Cash gift from Indian resident to OCI

from Indian tax perspective there is no tax implication on either of you. Your mother can execute transaction under LRS route

But you also need to assess its implication from Singapore taxation in your personal hand since you are residing there.

Hi 

As regards your query above please note:

 A Resident Indian can make a rupee gift to an NRI/PIO/OCI who is a close relative however there is an overall limit of USD 2.5 lakhs per FY under the Libralised Remittance Scheme(LRS) of RBI for a Resident Indian.

However TCS shall be collected on the same which can be claimed in your Mom's ITR .

Hope you find the information helpful, if yes do rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

In India, gifts received from a relative is not taxable under the Income Tax Act. Since your mother is an Indian resident and you are her child, this gift will be considered a gift from a relative.

So this gift will not be taxable for both donor and donee. 

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

- Upto 30.09.2023,TCS@5% (i.e. Rs.65k) would be collected by the bank on Rs. 13lacs. She can claim the TCS credit at the time of filing of ITR of A.Y. 2024-25. w.e.f 01.10.2023, TCS rate would be 20%. 

For detailed discussion you may opt for phone consultation

Hey,

As per section 56 there will be no tax liability on the gifted any amount received by way of gift from Relatives,

Relative word defined under  Section 2(41) of Income Tax Act, 1961,the term “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

and such transections can be held between Resident to Resident or Resident to RNOR & Resident to NR.

In such given situation, Mother gives gifts to her son so there is NO TAX IMPLICATION for both Doner & Donee as such gift transections are held between Relatives.

Some other points have to be noted:

• 
  LRS Scheme: A Resident Indian can make a rupee gift to an NRI/PIO/OCI who is a close relative however there is an overall limit of USD 2.5 lakhs per FY under the Libralised Remittance Scheme(LRS) of RBI for a Resident Indian.

• 
  TCS Provisions:TCS shall be collected on the same which can be claimed in your Mom's ITR,              The TCS has now increased to 20% from 5% for all remittances except those concerning education or medical treatment. Remittance is any money you send abroad.

• 
  ITR of MOM:it has to be checked that in mom ITR there should be white money of Rs20lakhs disclosed income on which mom had paid tax while filling its Income tax rerturn(ITR) as transfer money to her son via Banking channels.

I hope this information is helpful for you & i request to please give feedback for the same to appreciate me further,

i am waiting for your call.

Thank You

Regards,

CA Vaibhav RK Garg

No tax on sender or receiver as there is a son mother relationship.

The only issue could be charging of TCS by bank on such transaction, however your mother can claim credit of such TCS but bank might charge such TCS.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.